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How are retained earnings related to a company's income statement?

How are retained earnings related to a company's income statement?

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تم إضافة السؤال من قبل Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
تاريخ النشر: 2016/02/05
Muzammil Hussain
من قبل Muzammil Hussain , Accounts Manager , Yuma Foods Est

Each Year a company distributes some of its profits as dividends and retain some of them in the company for future growth and prospects, this portion of the profit that is retained in the company is called retained earnings, both these figures I.E Dividends and Retained Earnings appear in the statement of changes in Equity...!

Abu Bakar Ashfaq
من قبل Abu Bakar Ashfaq , Senior Consultant , PricewaterhouseCoopers Middle East

The net profit ultimately transfer to the retained earnings after distribution of dividend to the shareholders.

Aroma Seawater
من قبل Aroma Seawater , Business Teacher , ADVETI

Retained earnings are the profit for the period retained as equity in the balance sheet used as capital investment

Mesgana Hawando
من قبل Mesgana Hawando , Adjunct Instructor , Broward College

Retained earnings are derived from net income on the income statement and contribute to book value (shareholder's equity) on the balance sheet.

Muddassir Farooq
من قبل Muddassir Farooq , Chief Financial Officer CFO , Al Amjaad Trading and Manufacturing Company

The net loss and profit of an organisation is added to the retained earning and shown in the statement of changes in equity

abdelaziz allam
من قبل abdelaziz allam , محاسب اول , شركة كامبردج مصر للاستثمار التعليمي ش.م.م

company's income statement result net profit that added to retained earninig 

Saif Ali
من قبل Saif Ali , Project Manager , Pak consultant

Each period, net income from the income statement is added to the retained earnings and is reported on the balance sheet within shareholders' equity. Retained earnings are a key component of shareholder equity and the calculation of a company's book value.

Zahra Waheed
من قبل Zahra Waheed , Finance Assistant Intern , DG Study World

Retained Earnings are the bottom line of the Income or P&L statement and are reinvested into the company to generate more revenue; after all the expenses have been deducted and dividends have been distributed. 

Retained earnings sometimes appears at the bottom of the income statement due to the shortness of the restained earnings statement. 

Moustafa  Hefny
من قبل Moustafa Hefny , Graduate Research Assistant , Australian University

Retained earnings are a company's accumulated profits that haven't been distributed to shareholders as dividends. These profits are frequently put back into the company through capital investments, debt reduction, or research & development.


Since retained earnings are a part of shareholder equity, the amount from one period to the next is shown on a company's balance sheet. However, because retained profits are determined as the difference between a firm's net income and dividends given to shareholders, they are also connected to the income statement of the company.

Chandan Majhi
من قبل Chandan Majhi , Managing Director , Alfa Beta

Retained earning is the amount of money after all the expenses, dividing among the share holders and remaining money which can be used for future prospects of the company.

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